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Crime, inequality and unemployment in England and Wales

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  • Dongxu Wu
  • Zhongmin Wu

Abstract

A model of crime is developed based on principles from the existing literature with some original insight. The implications of the model are that income inequality and unemployment are important explanatory variables for crimes motivated by economic gain, but do not offer much explanatory power for other types of crime. Panel data of UK regions over the years from 2002 to 2007 are then used to test these predictions. The empirical results strongly support the hypothesis that crime is an economic phenomenon.

Suggested Citation

  • Dongxu Wu & Zhongmin Wu, 2012. "Crime, inequality and unemployment in England and Wales," Applied Economics, Taylor & Francis Journals, vol. 44(29), pages 3765-3775, October.
  • Handle: RePEc:taf:applec:44:y:2012:i:29:p:3765-3775
    DOI: 10.1080/00036846.2011.581217
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    References listed on IDEAS

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    1. Raphael, Steven & Winter-Ember, Rudolf, 2001. "Identifying the Effect of Unemployment on Crime," Journal of Law and Economics, University of Chicago Press, vol. 44(1), pages 259-283, April.
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    Cited by:

    1. Ahad, Muhammad, 2016. "Nexus Between Income Inequality, Crime, Inflation and Poverty: New Evidence from Structural Breaks for Pakistan," MPRA Paper 72429, University Library of Munich, Germany, revised 2016.
    2. Gail Pacheco, 2012. "The cost of poor transitions for youth," Working Papers 2012-09, Auckland University of Technology, Department of Economics.
    3. Tiago Freire, 2015. "City of God Redux: Inequality, Migration, and Violent Crime in Brazil between 1980 and 2000," ERSA conference papers ersa15p658, European Regional Science Association.
    4. repec:spr:izalpo:v:6:y:2017:i:1:d:10.1186_s40173-017-0084-2 is not listed on IDEAS
    5. Mauro Costantini & Iris Meco & Antonio Paradiso, 2016. "Common trends in the US state-level crime.What do panel data say?," Working Papers 2016:14, Department of Economics, University of Venice "Ca' Foscari".
    6. Gail Pacheco & Jessica Dye, 2013. "Estimating the Cost of Youth Disengagement in New Zealand," Working Papers 2013-04, Auckland University of Technology, Department of Economics.

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